Scientific Games Shares Are Trading Lower As Pandemic Hits Q1 Gaming Revenue

Scientific Games Corp SGMS reported first-quarter FY21 revenue growth of 1% year-on-year to $729 million, beating the analyst consensus of $713.24 million.
Gaming revenue declined 23% Y/Y to $244 million from the pandemic-induced restrictions for global casinos; Lottery revenue rose 17% Y/Y to $248 million from U.S. instant game sales, large Powerball, Mega Millions jackpots, and strength in Europe.
SciPlay revenue rose 28% Y/Y to $151 million from continued growth in social casino games that outpaced the market and record payer conversion.
Digital revenue rose 12% Y/Y to $86 million from iGaming’s record results in the quarter led by original content, successful launch in Michigan, and strength in Europe.
The new Gaming strategy and product roadmap continue to have success and Lottery, with strong growth delivery from the SciPlay and Digital businesses in Q1, CEO Barry Cottle said.
Net loss declined 94.2% Y/Y to $9 million, with EPS loss of ($0.16), beating the analyst consensus of ($0.46) loss.
AEBITDA rose 35% Y/Y to $270 million.
It generated $123 million in operating cash flow and held $1.1 billion in cash and equivalents.
Price action: SGMS shares traded lower by 5.39% at $52.99 on the last check Monday.